Stocks have been soaring lately--but gold prices have climbed to the highest level in three weeks. The metal is up 2.3 percent this week and has gained for four sessions in a row. So--is gold the way to go when it comes to investing? Two guests on "Squawk Box' have different opinions. Greg McCoach is president of The Mining Speculator and Jeffrey Christian is Managing Director of CPM Group.
McCoach says he's very bullish on gold--especially with the recent weakness of the U.S. dollar. He says that's provided an opening for gold--and that gold is moving from a commodity to an investment in the minds of buyers. He says the price of gold has moved steadily up from its 1999 price of around $250 and ounce. McCoach says a price of $1,000 an ounce in 2007 is very realistic. He calls it a real alternative for investors.
Christian says he expects gold to be strong in the first half of 2007--but expects a fall after that. He says the price of gold will depend on international politics and the price oil. Christian says uncertainties in those areas could drive investors away from gold and into paper assets like stocks and bonds. He says gold has always been as asset--some 700 million ounces of gold have been sold over the last 40 years. And Christian says it's no surprise gold is attractive to some buyers--but that it's not the only option out there.
FYI: gold has gained in price each year since 2001, moving in tandem with the euro from 2002 to 2004. Last year, gold rose 18 percent.